The Value of Magazine Readership

“Circulation has an important place in the way magazines are sold

to advertisers, but . . . advertisers are interested in the relationship
between the reader and the magazine’s editorial content.”
— Mike Drexler
Chief Executive Officer, Optimedia International U.S.
( Advertising Age, September 26, 2005)

Change promotes change. Consumers have an increasing
array of media options and new technology to control
how they use media. In this brave new world, consumers
can reject unwanted advertising, and they are doing so.
As a result, advertisers are seeking additional information
about consumers’ media behavior and how their
changing media habits affect their buying decisions.
For magazines, this new level of scrutiny extends
beyond audience to how consumers buy magazines—
what they pay and how they acquire their copies.
A growing body of research suggests that many
assumptions may not be accurate about the connection
between consumers’ reaction to magazine advertising
and the price paid and circulation source for the magazines
that they read. This information shows that:
• Price paid and circulation source do not predict
reader engagement or demographics
• Differences in the ways subscribers, newsstand
buyers and public place readers respond to
magazines and to the advertising in them are
often insignificant
• Public place copies generate significant advertising
exposure opportunities, often to readers with
desirable demographic characteristics

www.magazine.org

The Value of Magazine Readership Page 1

 Increased Public Place Reading

The growing composition of public place readers among
total magazine audience has also fueled advertisers’
interest in understanding the effects of circulation source
and price. Pioneering work to understand the contribution
of public place readership has been conducted by DJG
Marketing, LLC, and Waiting Room Subscription Services,
LLC. Their analysis of MRI data shows that in 2005
approximately one-fourth —24% — of magazine reading is
done in public places, up from 14% in the last ten years.
Rick Jones of DJG Marketing notes that with advances
in addressability and public place targeting, public place
readers represent an extremely valuable audience
segment: “Public place copies are individually addressed
and strategically targeted to specific locations. They are
third-party auditable copies with proven readership value for
the advertiser. They represent about one in four magazine
readers.”

Readership of Public Place Is Growing

60% Increase in the Past Decade
Pure Public Place
of Total Audience 24%
>

24%

14%
1995 2005
Source: MRI Spring Data 2005

To view the full presentation, go to www.magazine.org/readership. www.magazine.org

The Value of Magazine Readership Page 2

 Public Place Copies Increase Ad Exposure

“What is important is how the reader reads the magazine, not how
they obtained the copy or the price they paid. We’ve seen this in
our — and others’ — research.”
—Debbie Solomon
Senior Partner, Group Research Director, MindShare

Public place magazine copies offer a key benefit for
advertisers: additional advertising exposure opportunities.
Public place copies typically generate many more readers
per copy (RPC) than paid sources, and these public place
readers are often more upscale.
At the 2003 Worldwide Readership Research Symposium
in Cambridge, MA, Dr. Scott McDonald of Condé Nast and
Rebecca McPheters of McPheters & Company presented
research from their paper entitled “Ad Exposure as a
Model of Print Communication Value,” which was based
on circulation data from Condé Nast titles matched with
data from Mediamark Research, Inc. (MRI). Their research
found: “Public place distribution can and frequently does
enable advertisers to reach a larger body of readers who
are involved, demographically qualified and responsive to
their advertising message.”

Estimated Readers Per Copy

Generated by Public Place and Newsstand Copies
Factor (Public
Newsstand Public Place Place/Newsstand)1
Total Readers 4.0 30.0 7.5

Adults HHI $50,000+ 2.4 16.0 6.7

Adults HHI $75,000+ 1.6 10.0 6.2

Professional/Managerial 1.3 7.9 6.1

Women 25-54, HHI $50K+, Any College 1.2 8.3 6.9

Adults Purchased New Car Past 12 Months 0.6 3.9 6.5

Source: Condé Nast research incorporating MRI data, 2003

1
Factor (Public Place/Newsstand) is the multiple of readers per copy that public place copies offer as compared
to newsstand copies. For example, among total readers in the titles studied, public place readers per copy are 7.5 times
those of newsstand buyers.

For the full paper, go to www.magazine.org/readership. www.magazine.org

The Value of Magazine Readership Page 3

 How Readers Buy Does Not Predict
Reader Profile
To go beyond the initial findings on public place copies, The only case in which the index for price paid or source
McPheters & Company conducted a study in which the was greater than 110 was among respondents with a child
subscriber base of multiple magazines was anonymously in the household whose subscription was not direct to
matched with the base of MRI respondents. For those publisher (index 113).
subscribers whose names were located in the MRI database,
demographic characteristics that are often used as a According to Rebecca McPheters, who led the analysis,
determinant of reader quality—education, income and “The price paid for a particular magazine does not predict
presence of children in the household—were analyzed. the quality of the reader nor is reader quality determined
Additionally, MRI involvement metrics—average page by the method by which a reader acquires a magazine.
exposure, publication rating, interest in advertising and Quality is a function of reader characteristics (i.e., do they
frequency of reading—were analyzed. fit the target or are they qualified to buy the product
advertised?) and by the engagement of readers with
Specifically, a comparison was made against the MRI editorial and advertising content (i.e., will they actually see
database between those respondents who paid more or notice the ad?).”
versus less than the average
subscription price and Reader Demographics by Circulation Source
those respondents who Subscriber Paid Subscriber Paid Bought Did Not Buy
Less Than More Than Direct to Direct to
purchased a subscription Demographics Average Net Price Average Net Price Publisher Publisher
directly from the publisher College Degree+ 102 98 106 93
and those who did not. Employed Full-Time 99 101 102 102
Professional/Managerial 101 100 106 98
The findings showed Any Children in Household 94 106 91 113

relatively little difference in This chart is a summary of indices. Sources: MRI Doublebases 2003, 2004 and magazine proprietary circulation data.

subscriber characteristics
or reader involvement Reader Involvement by Circulation Source
based on circulation source Subscriber Paid Subscriber Paid Bought Did Not Buy
or average price paid. Less Than More Than Direct to Direct to
Involvement Average Net Price Average Net Price Publisher Publisher

Average Page Exposure 99 100 105 95

Average Publication Rating Score 100 99 103 97
Interest in Advertising 100 99 104 96
Frequency of Reading 100 101 101 97
This chart is a summary of indices. Sources: MRI Doublebases 2003, 2004 and magazine proprietary circulation data.

To view the full presentation, go to www.magazine.org/readership. www.magazine.org

The Value of Magazine Readership Page 4

 How a Copy Was Acquired Does Not Predict
Purchase Behavior
Researchers at Advertiser Perceptions Inc. assess reader combination of past purchase behavior (usually “last 90
purchase behavior through their ongoing Power Metrics days” or “in the past year,” depending on category),
study. Recently, they looked at the relative likelihood past purchase influence and future purchase intent in
of readers to buy a product or service or to influence designated product categories.
purchase behavior, based on whether the reader bought
his or her magazine by subscription or at the newsstand Randy Cohen of Advertiser Perceptions summarized the
or whether the copy was read in a public place. findings: “Public place readers are as likely to be buyers
or influencers in most product categories as compared
Power Metrics’ findings indicate that the way in which a to subscribers.”
reader acquires a copy of his or her magazine does not
predict reader likelihood of purchasing, which they call
Reader Buying Propensity (RBP). RBP reflects a

Reader Buying Propensity (RBP)

Based on Past Purchase, Past Influence and Future Intent to Purchase 1

How Publication Obtained

Subscribe OR2
Newsstand Public Place Subscribe Newsstand
Respondents 3,561 4,652 7,033 7,952
Percent Index3 Percent Index3 Percent Index3 Percent Index3

Cellular Hardware and Service 20% 124 20% 121 17% 108 17% 108

Consumer Computers 43% 119 42% 116 37% 103 38% 105

Consumer Travel 56% 114 56% 113 56% 113 55% 110

Business Financial 42% 115 43% 118 40% 111 40% 109

Televisions 18% 133 16% 117 15% 111 15% 109

Prescription and Nonprescription Medications 72% 109 70% 106 71% 108 70% 107

Cars and Light Trucks 22% 118 21% 110 20% 104 20% 105

Women’s Cosmetics 58% 127 52% 113 51% 112 52% 112

Men’s Toiletries 65% 116 60% 108 58% 103 58% 104

Alcoholic Beverages 57% 112 57% 111 54% 106 53% 104
Source: Advertiser Perceptions/Power Metrics Wave 2, 2005, conducted by Harris Interactive
1
Based on total adults’ purchase cycles in last 90 days or in past year. 2 Reflects the net of subscriber/newsstand buyers; bases vary by category.
3
Index represents ratio of magazine readers by circulation source compared to all adults in the database.

To find out more about the Power Metrics study, go to www.advertiserperceptions.com. www.magazine.org

The Value of Magazine Readership Page 5

 Actions Taken Similar for Paid and Non-Paid

Affinity Research’s VISTA Print Effectiveness Rating
Service studies the reaction of magazine readers to
advertising creative across various publications based on
attitudinal and behavioral shifts. Through database
analysis, Affinity researchers were able to examine actions
taken for those readers who had purchased a magazine
compared to those consumers who read a magazine that
they did not purchase.
In describing their findings, Tom Robinson, Managing
Director, Affinity Research LLC, noted: “Based on
interviews with more than 60,000 magazine readers in
2005, on average, more than half took or plan to take
action as a direct result of exposure to specific print ads.
Reader action levels were similar for both paid and
nonpaid readers.”

Actions Taken — Advertising

Paid Non-Paid
Consider purchasing the product or service 20 % 18 %

More favorable opinion about the advertiser 13 11

Gather more information about product or service 12 11

Visit advertiser’s Web site 10 10

Purchase the product or service 8 7

Visit a store, dealer or other location 8 7

Save the ad for reference 6 5

Recommend the product or service 5 5

Some other action 4 5

Took any action (net) 53 % 52 %

Source: Affinity’s VISTA Print Effectiveness Rating Service
Base: Actions taken based on respondents recalling specific ads, multiple responses.

To view the full presentation, go to www.magazine.org/readership. www.magazine.org

The Value of Magazine Readership Page 6

 How a Copy Was Acquired Does Not Affect
Reader Experiences
In a landmark study, Northwestern University’s Media
Management Center explored the reading experiences of
more than 4,300 readers, based on their responses to a
survey of 220 different experiences, as well as to other
questions relating to how they use magazines. Statistical
analysis resulted in the bundling of the 220 individual
experiences into 39 overall clusters.
The 39 overall experience clusters were then correlated to
a metric called Reader Usage Measure (RUM). RUM is
based on four variables found to be most relevant to
reading experiences. 1
Both experiences and reader usage were then analyzed
by reader segment, including how the reader acquired the
magazine. The results showed that the Reader Usage
Measure (RUM) varied relatively little on key advertising
experiences between readers who bought their magazine
on the newsstand or by subscription.
The overall RUM score for public place readers was surprisingly
strong, given that public place readers by definition do not
have multiple opportunities to pick up the magazine. In
fact, the overall RUM score for public place readers (2.1)
was roughly double that of very light readers (1.1).
(continued on next page)

Magazine Reader Experience Study

Reader Usage Measure (RUM) Scores
By Advertising-Related Experiences Subscribers Single Copy Public Place

It’s relevant and useful to me 3.1 3.1 3.0

I like some of the ads a lot 3.0 3.1 3.0

I want more ad information 3.3 3.3 3.3

It improves me and helps me try new things 3.0 3.1 2.9

I relate to the ads 3.1 3.1 3.0

I read the ads 3.0 3.1 3.0

I dislike the ads 2.9 2.9 3.0

Overall 3.1 3.0 2.1

Source: 2003 Magazine Reader Experience Study, The Media Management Center of Northwestern University

1
Question topics that defined Reader Usage Measure (RUM)
– Time spent reading or looking into a copy of the magazine the last time it came out
– Number of days the reader had read or looked into a copy of the magazine the last time it came out
– Number of different times the reader read or looked into any issues of the magazine in a typical month
– Total amount of time spent reading or looking into any issues of the magazine in a typical month

To find out more about the Magazine Reader Experience Study conducted by
Northwestern University, go to www.magazine.org/readership. www.magazine.org

The Value of Magazine Readership Page 7

 How a Copy Was Acquired Does Not Affect
Reader Experiences (continued)
John Lavine, Director, The Media Management Center of
Northwestern University, summarized the study’s findings:
“Our research found that magazine usage is about the same
for magazine subscribers and newsstand buyers. In addition,
how readers obtain a magazine or where they read has very
little impact on the magazine reading experience. Reader
usage is also unaffected by average subscription price.
It is also interesting to note that we found that public place
readers have higher-than-expected involvement with the
magazines they read, which is significant given their higher
reader-per-copy levels: in other words, the reading
experience is separate from the transaction experience.
Subscribers, single copy buyers and public place readers
also reacted similarly to advertising.”

“Our proprietary research has consistently indicated that consumer engagement with
magazines is not contingent upon the means through which they receive the magazine.
A number of other factors —such as reasons for reading and how the magazines are
read —weigh heavier on reader engagement than whether the magazine was received
through newsstand purchase, subscription or alternate distributions.”
— Judy Bahary
Associate Media Director, Starcom Worldwide

Summary
Valuable new media research from various experts— accepted by leading advertising agencies
—all point to the same conclusions:
• Public place copies attract multiple readers of high quality, giving advertisers increased
exposure opportunities to desirable consumers
• Price paid and how the copy was acquired—subscription, newsstand or public place—does
not predict reader demographics, attitudes, engagement, experiences or buying behavior
• Demographic, attitudinal and behavioral characteristics of public place readers are
surprisingly strong in relation to subscription and newsstand readers

For more information about the value of magazine readership, contact Wayne Eadie,
Senior Vice President, Research, Magazine Publishers of America, at 212-872-3722
or weadie@magazine.org. Copyright © 2005, Magazine Publishers of America, Inc.
All rights reserved. Magazine Publishers of America, 810 Seventh Avenue, 24th Floor,
New York, NY 10019. Tel. 212 872 3700 www.magazine.org

The Value of Magazine Readership Page 8